Once again, the Republican Party has demonstrated which side
it supports. Between the average taxpayer or the 1%, its call for a repeal of Obama's anti-tax haven law of 2009- before it has even had a chance to be put into effect- provides us with a clear answer.
Some Facts on FATCA
Reuters is reporting that the Republican Party is expected to
approve a resolution this week, calling for repeal of an Obama administration
law that is designed to crack down on offshore tax dodging.
The law,
Foreign Account Tax Compliance Act (FATCA)
requires foreign banks to find any American account holders and disclose their
balances, receipts, and withdrawals to the US
Internal Revenue Service (IRS), or be
subject to a 30-percent withholding tax on income from US financial assets held
by the banks. Owners of these foreign-held assets must report them on US tax
returns if they are worth more than $50,000.
It was always going to be controversial and not beloved by
banks,
libertarians and some Americans living abroad. Another example of Big
Government overreach, they howled. Lobbyists have been successful at delaying the law in
operation. Its effective date has been pushed back repeatedly, with enforcement now set to start on July 1.
If the
Republicans have their way- and there doesn't seem to be much chance they will-
FATCA would never start at all.